Our Senegalese authorities appreciate staff’s constructive engagement and valuable policy advice. They also welcome Fund’s support for their capacity development efforts. The Policy Support Instrument (PSI) arrangement continues to play a critical role in supporting the authorities’ efforts to maintain macroeconomic stability and achieve inclusive growth. The economic policies and reforms undertaken in recent years have contributed to improving significantly the performance of the Senegalese economy, despite a difficult international environment. Macroeconomic performance and program implementation in 2016 remain satisfactory, and progress was also made on structural reforms, although some of them were implemented with delay. The authorities request a one-year extension of the PSI to consolidate these achievements, further improve the efficiency of Treasury operations, and sustain progress toward regional convergence criteria.
The PSI-supported program is well aligned with the objectives of the strategy ‘Plan Senegal Emergent” (PSE) which aims to accelerate growth, and improve the living conditions of the population. In this context, sound macroeconomic policies and strong reform efforts are being implemented with a view of transforming Senegal into a middle-income country by 2035. In recognition of the authorities’ fruitful efforts to boost growth, sustain fiscal consolidation and improve debt management, Moody’s upgraded Senegal’s rating to Ba3 with a stable outlook in April 2017. It is against this background that Senegal successfully issued last month a $1.1 billion Eurobonds on favorable terms.